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The Economist Magazine Looks Outside For Insight

Posted by kdawson on Sat Mar 10, 2007 11:04 PM
from the next-big-thing dept.
An anonymous reader writes "All of traditional media is scrambling to remain relevant on the Net, but The Economist of London is taking it to extremes, with a skunkworks operation called Project Red Stripe. The magazine gathered six staffers from around the world, set them up in a London office, and gave them six months to come up with a radically new idea for the business. As a magazine for free markets, they figured others would have the best ideas — so are throwing open the doors for community input."
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  • Business Model (Score:5, Insightful)

    by ChadAmberg (460099) on Saturday March 10 2007, @11:16PM (#18305196) Homepage
    Man, that rules as a business model.

    I'm hired to come up with new ideas. Paid who knows how much $$. So rather than do any actual work, I'm going to let the internet schmucks do it for me! I just have to pick which ideas are best.

    Man, I'm in the wrong job...
    • Re: (Score:3, Insightful)

      No kidding.

      I've read the Economist religiously for several years. I firmly believe it to be probably the best magazine/newspaper out there. I subscribe despite their sub price being approximately 5 times that of Times or Newsweek or any other magazine out there.

      That said, this is the most stupid idea I have ever heard out of them. They actually will compensate you, with a rocking 6-mo web-subscrption to economist.com (street value: roughly $50).

      Perhaps the Economist should actually talk to their economis
      • Re:Business Model (Score:5, Informative)

        by PRC Banker (970188) on Sunday March 11 2007, @12:26AM (#18305612)
        this is the most stupid idea I have ever heard out of them. They actually will compensate you, with a rocking 6-mo web-subscrption to economist.com (street value: roughly $50).

        Perhaps the Economist should actually talk to their economists, and ask them what 'Incentive Compatability' means. $50 for a new revolutionary business idea surely isn't incentive compatible. If I were the Economist, I'd be terribly embarassed about this.


        I couldn't agree more. They're failing at the first hurdle. Even worse, the terms upon which the idea is submitted basically means they can use the idea in any way they like and they will hold a patent on it. So it's not just getting a poor level of compensation for an idea, but giving that idea up for use by anyone except the Economist Group. Here are 4 clauses from their terms and conditions [projectredstripe.com]:

        1. You grant to The Economist Group and its designees a perpetual, irrevocable, non-exclusive fully-paid up and royalty free licence to use such Submission without restrictions of any kind and without any obligation of payment or other consideration of any kind, or permission or notification, to you or any third party.

        2. The licence shall include, without limitation, the irrevocable right in the name of The Economist Group or its designees throughout the universe in perpetuity in any and all media now or hereafter known (i) to reproduce, prepare derivative works, combine with other works, alter, translate, distribute copies, display, publish, perform, license the Submission, and all rights therein; (ii) to apply for and obtain a patent in respect of any inventions disclosed in the Submission; (iii) to file an application to register any designs and/or any sign capable of being registered as a trade mark; (iv) to register any name capable of being registered as a domain name.

        3. In addition, you agree that you will (at the request and expense of The Economist Group) enter into such documents as may be required to perfect or secure such rights or to assign such rights to The Economist Group absolutely if so requested.

        4. In exchange, if we use your Submission then we will give you credit by acknowledging you as a contributor on our website at ProjectRedStripe.com and if we launch a product or service thanks to Submission, we will also offer you a free six-month subscription to Economist.com. Where The Economist Group applies for a patent in respect of an invention of which you are the inventor The Economist Group will name you as the (or if appropriate an) inventor in such patent application.

        • Re:Business Model (Score:5, Insightful)

          by zippthorne (748122) on Sunday March 11 2007, @01:41AM (#18305910) Journal

          1. You grant to The Economist Group and its designees a perpetual, irrevocable, non-exclusive fully-paid up and royalty free licence to use such Submission without restrictions of any kind and without any obligation of payment or other consideration of any kind, or permission or notification, to you or any third party.


          Let's not ascribe more evil than necessary.
        • Love the bit about 'universe'. Yeah, just in case we conquer other solar systems. Although the idea of whether licence conditions set on Earth apply in other solar systems' legal jurisdictions is still going through the Galactic Supreme Court.
      • Perhaps the Economist should actually talk to their economists, and ask them what 'Incentive Compatability' means. $50 for a new revolutionary business idea surely isn't incentive compatible.
        Have you submitted that idea yet? Because if you haven't, I'll do it claim the 6 month free sub!
    • by SuperBanana (662181) on Sunday March 11 2007, @12:43AM (#18305682)

      I'm hired to come up with new ideas. Paid who knows how much $$. So rather than do any actual work, I'm going to let the internet schmucks do it for me! I just have to pick which ideas are best.

      Laugh as you might, but this is almost exactly what Venture Capital firms do. People beat on their door with business ideas, they pick the most profitable, dump some money in with ludicrously favorable (for them) terms, and see what happens.

      One might say, "ah, but people benefit from VC money; here, people just get a magazine subscription." Well, I'd argue that the benefit to the idea-holder is about on par, comparing the two...

    • Model (Score:5, Insightful)

      by Mark_MF-WN (678030) on Sunday March 11 2007, @12:44AM (#18305688)
      This seems doomed to failure. You think comittee thinking is bad? Imagine a comittee of tens of thousands or more. Filtering good ideas out of the gibberish would be a gargantuan undertaking -- probably one that is more difficult than just thinking up your own ideas. Didn't the article say that they got some of the best minds in the business? So why would those great minds turn to a few thousand sub-mediocre minds? Given the choice, I'll take half a dozen smart people locked in a room with a whiteboard and an espresso machine over ten thousand jackasses making decisions by mob thinking.

      It's interesting how in every modern war, the government that wins (assuming there is anything even vaguely like a winner) invariably puts a very small group of top military minds in charge of the war effort, even to the point of managing relevant aspects of the economy. Losers do just the opposite -- they let their legislature, congress, senate, president, chairman, corporate interests, beauracrats, and cronies make war decisions. And naturally, they either make retarded decisions or they rob the public blind at the expense of the war effort.

      Comittee thinking is a disease. The bigger the comittee, the worse it gets. Human collaborative efficiency for creative works tops out at around 4 or 5 people. If you hope to invent new paradigms, you'll be hard-pressed to accomplish it with even as many a three people, and even two is pushing it.

      • This seems doomed to failure. You think comittee thinking is bad? Imagine a comittee of tens of thousands or more. Filtering good ideas out of the gibberish would be a gargantuan undertaking -- probably one that is more difficult than just thinking up your own ideas. Didn't the article say that they got some of the best minds in the business? So why would those great minds turn to a few thousand sub-mediocre minds? Given the choice, I'll take half a dozen smart people locked in a room with a whiteboard and an espresso machine over ten thousand jackasses making decisions by mob thinking. It's interesting how in every modern war, the government that wins (assuming there is anything even vaguely like a winner) invariably puts a very small group of top military minds in charge of the war effort, even to the point of managing relevant aspects of the economy. Losers do just the opposite -- they let their legislature, congress, senate, president, chairman, corporate interests, beauracrats, and cronies make war decisions. And naturally, they either make retarded decisions or they rob the public blind at the expense of the war effort. Comittee thinking is a disease. The bigger the comittee, the worse it gets. Human collaborative efficiency for creative works tops out at around 4 or 5 people. If you hope to invent new paradigms, you'll be hard-pressed to accomplish it with even as many a three people, and even two is pushing it

        Everybody here disagrees with you.

      • Re: (Score:3, Interesting)

        You obviously thought this up all by yourself, without the help of a committee, because it is really stupid, thereby disproving your point. Democracies ARE committees; that's the whole point. When you leave one or a handful of people in charge, you get Vietnam, Iraq and Afghanistan. Incompetence. Occasionally you get Hitler, Stalin and Mussolinis. Unchecked madness. Are you saying democracies are losers and military fascists are winners? Also, your pointless rant is unfounded. These 10,000 assumed
        • Re: (Score:3, Insightful)

          Democracy is a horrible form of government. Can you point out even a single example of a democratic state that doesn't operate in a state of complete and utter lunacy?

          The problem with Vietnam and Iraq is precisely the fact that they were run by committee. Congress got to periodically hamstring the war effort, senators got to earmark funds for projects that did nothing more than keep useless people employed, generals couldn't agree on how to wage the war and were going in a dozen directions at once. In

          • I interpreted it that you get Vietnam and Iraq: the countries, not Vietnam and Iraq: the mess the US/UK make trying to sort out the mistakes they made incorporating said countries in the first place.
      • Re: (Score:3, Insightful)

        Filtering good ideas out of the gibberish would be a gargantuan undertaking -- probably one that is more difficult than just thinking up your own ideas


        What if the garguatuan dataset was the filtered through a community process ? like everyone can submit ideas and everyone can vote for the ideas they like best ? :)
      • Fred Brookes put it far more succintly in TMMM.
      • Yeah, back in my day we had no stinking commitees, the Pharoh drew a trinagle in the sand and proceeded to beat people until he got what he wanted.
      • Re: (Score:3, Interesting)

        Don't forget, though, that the country that wins gets to write the history. And, since people in power hate the idea of anyone but themselves making the decisions, they will invariably ascribe faults to the loser such as you describe:

        "They waged war by committee, legislature, blah blah blah".

        There were a couple of countries in "the modern era" that were extremely authoritarian in model (Germany, Japan) and who lost a fairly big skirmish to countries that were anything but (USA, England) who both had huge r
  • by CrazyJim1 (809850) on Saturday March 10 2007, @11:17PM (#18305202) Journal
    We make a beer. But just not any beer. A beer that's brewed in Jamaica mon.
  • The plan so far (Score:5, Insightful)

    by wombatmobile (623057) on Saturday March 10 2007, @11:19PM (#18305208)

    The magazine gathered six staffers from around the world, set them up in a London office, and gave them six months to come up with a radically new idea for the business.

    In the first week, the staffers bought beer, wine, wisky, condoms, flat screen televisions and gaming consoles.

    In the second week, the staffers hired a young graphic artist through the internet for $35 per hour to set up a rudimentary web page asking for innovative ideas.

    The next 5 months is a blur.

    The final two weeks were a flurry of activities. So many good ideas to review! So little time!

  • Focus on content, not the technology, okay?

    Now, decide upon what your content will be that will make it different or more useful than all the other content out there. That's hint #2.
    • Re: (Score:3, Insightful)

      Wow, you have no idea what you're talking about. Nice work!

      I'll qualify this troll-like statement by pointing out that The Economist IS IN THE BUSINESS OF MAKING CONTENT. Take a look at their website, since you've obviously never even heard of the little magazine they run that puts Newsweek and Time to shame, and you'll realize how uninformed your comment is: http://www.economist.com/index.html [economist.com]
  • Hold on... (Score:4, Funny)

    by Bill, Shooter of Bul (629286) on Saturday March 10 2007, @11:21PM (#18305226) Journal
    They want us to come up with their business plan?

    Well, ok. for a price I'll let them in on a way to turn their debt into wealth following my easy five step program. Soon, they will be able to afford the lifestyle they deserve. This is a risk free, money back guarantee on how to turn their outstanding debt into outstanding wealth.
    • I'll let them in on a way to turn their debt into wealth following my easy five step program.

      Let me guess: The fourth step is "????", am I right?
  • by Cyberax (705495) on Saturday March 10 2007, @11:39PM (#18305320)
    1. Create Economics journal.
    2. Let the people on Internet do your work. ...
    3. Profit!
  • by jjeffries (17675) on Saturday March 10 2007, @11:43PM (#18305352)
    They should start a business consulting for other groups who want to go into business but can't quite figure out what business they want to be in...
  • by tedhiltonhead (654502) on Saturday March 10 2007, @11:43PM (#18305354)
    This raises an interesting question about the value of ideas. Naively, one might guess that anyone with sufficiently good ideas for the Economist's future are a) already working there, b) already working for some other organization that will use them, or c) independent entrepreneurs, implementing their ideas themselves. However, there is a real possibility that forward-thinking people do exist outside those categories, and who are perfectly willing and able to articulate their ideas to others in an actionable way.

    From the Economist's standpoint, however, creating an "innovation group" seems misguided. You can't *cause* innovation and creativity; you can only *allow* it to happen on its own. This occurs through maximal exposure to atypical influences, such as books, activities, people, and entertainment that one might not ordinarily choose. This, in fact, is how the brain grows -- by forming new synaptic pathways among its neurons.

    The Economist, or any organization, can best innovate by encouraging *all* its employees to, in the course of their ordinary work, occasionally take a moment to submit to management their views of how the organization's processes or other aspects can be improved, as it occurs to them. Good management must know how to create this culture. Everyone can be an innovator.
  • Anything that the Economist does is okay by me. That organization consistently releases exceptionally informative and insightful articles. If there had to be an Information Ministry for an ideal one world government, I'd hope that it would be as useful as what the Economist is.
  • Deal killer (Score:5, Insightful)

    by Somnus (46089) on Saturday March 10 2007, @11:51PM (#18305412)
    From their FAQ [projectredstripe.com], on the subject of remuneration [projectredstripe.com]:

    What will I get for submitting an idea?

    Unfortunately, we can give no direct reward or compensation for your contribution. If, however, Project Red Stripe chooses to develop an idea you have submitted, you will receive recognition on the Project Red Stripe web site and a free six-month subscription to Economist.com.


    I'm sure as hell not giving a money-making idea to the Economist Group if I'm not getting a piece of the pie. If it might save the world, maybe; if it's not money-making and helps folks, I probably would.
  • by Wazukkithemaster (826055) on Sunday March 11 2007, @12:03AM (#18305470)
    Give me $10000 a month, every month for the next 100 years. Your business will improve every year. If it doesn't, I'll just blame uncontrollable global market forces and claim your losses would have been more significant if not for me. It's bloody brilliant.
  • The knee jerk reaction to this sort of thing is that they are trying to get something for nothing on the backs of us under appreciated geniuses. I've
    seen the NGASAEB W.C. Fields quote in The Economist many times so this mindset may actually exist in thier mission statement somewhere. However,
    I have a list of ideas in my head that I would like to see happen but know I will never make them happen. Ideas--even really good ones--are cheap. The hard
    part is making them happen. If they can extract something u
  • They deserve to be (Score:3, Informative)

    by 2Bits (167227) on Sunday March 11 2007, @12:23AM (#18305596)
    ... doomed if all they can do was set up a lousy web site to ask for ideas from people on the street.

    That said, that's what the so-called "business consultants" do anyway. So what do you expect?

    (Note: I'm a long time Economist reader, I like it, although I do not necessarily agree with their sometimes-very-conservative view. I think they should throw those fuckheads out of the window instead of wasting time there.)

    • The Economist itself is one of the few fine print magazines that does not have to worry about going extinct anytime soon, but I second this-- the website and its pathetic implementation, not to mention the "submit your ideas, we will give you a honorable mention" fall far short of what I expect from the Economist.

      They gathered their most notorious underachievers in one spot -- and set them up to hang themselves?

      Potentially good idea -- but so far looks pretty shitty.

  • It takes 6 staffers to run a blog?
  • That, if they get a useful idea from the public, that they patent it (at least, in the US, where business method patents are allowed).
  • I have no idea if this plan will result in some way for The Economist to survive, but I hope they find a way to modernize where so many other papers are currently failing, because I've found them to be one of the single best sources for news in the world. Sure it's a week old by the time the paper (okay, "magazine") reaches my mailbox, but I still find myself learning more about topics that I'd previously only find headlines and blurbs about in mainstream national media. Sometimes the paper takes a stance I
  • I'm reading a lot of what sound to me like childish viewpoints regarding their request for idea submissions. Great ideas are thought up every day. In bars and laundramats and grocery lines all over the world people come up with ideas. Most of them suck, and most of the rest are never shared with anyone, even if they're decent ideas. How many people thought of a chip-clip before somebody actually made and marketed one? My mom used to use clothes pins back when they weren't such a rare item. WAY before

    • Riiight. You send them your "crappy back of the napkin idea", and they'll use their razor sharp Oxbridge eyes to spot its actual brilliance. (You didn't even *know* it was brilliant. Afgterall, you're just some dolt in a bar.)

      Yes, these chosen ones have a unique talent: not for actually generating ideas, but for "knowing it when they actually see it". \

      Now here's the question: Let's just say for the sake of argument you had the most incredible idea for a media company in the history of corporate media.
      • Let's just say for the sake of argument you had the most incredible idea for a media company in the history of corporate media...

        You're missing the point. Ideas all by themselves are worthless. You have to actually take big risks to do something with them to create value. Anybody who thought of the next "most incredible media company" has 3 options,

        1- interrupt their busy schedule, miss their kids soccer games, likely quite their job, and then dedicate a good portion of their lives trying to get seed money.

        2- share it with their bar buddies and tell themselves it would probably never work anyway.

        3 - or toss their idea at

        • You're missing the point. Ideas all by themselves are worthless.

          Let's see: Good idea + Effort = Success
          or. . . . . . . .No Idea + Effort = Failure

          If you refuse to value ideas, then you get NOTHING. Why should I? For all I know I might have use for it in the future, or I might find the effort to exploit it myself. Not telling you maintains its value; telling you loses it.

          Personally I'd say that a good idea has more worth to a company than the CEO, since its been shown time and again that most CEOs ha

          • To paraphrase Eienstien (or was it Edison?): "Genius is 5% inspiration and 95% perspiration". If you "save the Economist", I would asume 5% of their company is a fair price.
  • "We have no ideas."
  • ... which will cut transport carbon emissions by at least 75%.

    BUT I'll share it with you lot only after I see a few million dollars / pounds / euros / whatevers. Yup, it'll work absolutely guaranteed!

  • The Economist is the best magazine ("newspaper") in the world, which is why I pay a premium price to subscribe to it. The entire USA, sadly, has nothing that comes close. Hey geniuses: don't change anything.
  • by JRHelgeson (576325) on Sunday March 11 2007, @04:37AM (#18306502) Homepage Journal
    Cantor Fitzgerald is a bond trading firm, one of the few firms who can trade U.S. Government securities with the Federal Reserve Bank. They lost 658 souls on the 9/11 attacks, more than any other single company (their offices being above the impact site of One World Trade Center).

    In the early 1990's, it became apparent that their traditional way of doing business was going away. The future lay in electronic trading, not in suits talking on phones. The problem was their entire culture was built up around the brokers working the phones. They soon realized that changing the entire culture of how they did business would be nearly impossible.

    They realized that failure to change meant that newer startups would be soon coming online to take advantage of electronic trading, and that they would be doomed to a slow death of attrition as the competition cannibalized the marketplace.

    Rather than waiting to be cannibalized by some unknown competitor, they decided to create their own competition, to create their own cannibalizing agent. Thus was the birth of eSpeed which went public in 1999. As the broker/dealer market declined, the eSpeed market took up the slack and eventually consumed the old guard completely.

    The transition was so successful that before 9/11, Cantor handled about one-quarter of the daily transactions in the multi-trillion dollar treasury security market. The fourth quarter of 2001, after losing 2/3 their workforce, Cantor Fitzgerald posted a 25% profit.

    Today, thousands of traders at hundreds of global financial institutions conduct transactions worth over $45 trillion annually in eSpeed's multiple buyer/multiple seller markets.

    %-%-%

    Traditional media is scrambling to remain relevant on the Net because the 1:1 communication provided by the internet has completely decimated their existing business model. They are used to owning the information gathering and distribution networks.

    I have now completely abandoned the print media because I know that the reporting I will read is going to be one-sided, heavily slanted, while at the same time professing complete objectivity. How many print newspapers have had to shut down the online feedback on their editorial pages because the blowback was so overwhelming that they couldn't tolerate it?

    Digg is nothing but a groupthink mob rules mentality with no decent way to hold an actual conversation, which is fine because the one thing the groupthink mob mentality abhors is open discussion, so Digg is a perfect match for them. The positive result is that the level of discourse on Slashdot forums have risen significantly now that the Diggers have gone.

    I say that the future for The Economist would look a lot like Slashdot's discussions, where experts from around the world can opine on the news of the day.

    I have more to add, but it is getting late.
  • I'm willing to bet that the Project Red Stripe initiative springs from their current advertising agency - BBDO!

    Why else would the team be situated at AMV-BBDO

    Where is the project based?

    Our digs are at AMV-BBDO, The Economist's ad agency, on Marylebone Road in London. Take a look at our web cam.

    And Ad agencies (I've worked in one) are usually credited for such poor ideas..

  • Tilting at windmills (Score:3, Interesting)

    by SideshowBob (82333) on Sunday March 11 2007, @11:55AM (#18308256)
    There are no 'revolutionary business ideas'. For a century people have been conditioned to expect electronic media to be free, while print media has always been for-pay. The 'revolution' will be in changing those expectations. That just takes time.

    I'd also add that electronic media hasn't caught up to paper media in the area of convenience. I can roll up a copy of the Economist and stick it in my back pocket and read it while I'm waiting in the doctor's office. To read the Economist.com I have to take a laptop (or at the very least a PDA) and I have to somehow get the articles downloaded onto it first or rely on wi-fi service wherever I'm going.